Iron Ore’s Sharp Gains Catch Beijing’s Eye as Traders Summoned

China’s top economic planning body has summoned a group of iron ore traders and asked them to provide details of recent business, a sign that authorities want to head off fresh commodity inflation as the economy rebounds.

At least five domestic iron ore traders or brokerages are set to meet Tuesday with officials from the National Development and Reform Commission to discuss the market, according to people with knowledge of the matter. The NDRC requested the firms’ recent trading records for physical and futures markets ahead of the talks, said the people, who asked not to be identified as the information is private.

Iron ore futures jumped almost 60% from the end of October through last Friday, before slumping Monday on fears over action by authorities to quell the rally. The steel-making material has surged on hopes that infrastructure and construction activity will rebound this year as China’s economy expands faster.  

The summons from the NDRC’s Department of Price echoes previous drives to rein in iron ore, including in the first half of last year when soaring global commodity prices fueled concerns over inflation. The department has taken on a key role in monitoring — and trying to cool — price surges in markets from coal to soybeans as well as iron ore.